The Delhi and District Cricket Association (DDCA) on Thursday agreed to pay Rs 1 crore to the Delhi Government on court orders after admitting that it does have a pending entertainment tax demand of over Rs 2.6 crores. The submission was made during a hearing seeking court orders to get a No Objection Certificate (NOC) from the Delhi government so that the DDCA can complete all formalities to host the India vs South Africa Test Match from December 3-7.
The Delhi high court on Thursday asked the state government not to withhold the NOC for the upcoming India-South Africa Test, after taking note that the DDCA had agreed to deposit Rs 1 crore in connection with the administration’s demand.
The DDCA in a plea has challenged the tax demand of about Rs 23 crore raised by the Delhi government, for the period between 2003-09. The cricketing body in its plea had argued that the government had included sponsorships and advertisements in its calculation of the due taxes, which was “ultra vires and unconstitutional.”
A bench of justice Badar Durrez Ahmed and Justice Sanjeev Sachdeva has for now directed the AAP government not to take any coercive measures against DDCA in connection with the demand raised on the cricketing body by the administration’s Excise, Entertainment and Luxury Tax department.
The bench has directed the DDCA to deposit Rs one crore in two installments of Rs 50 lakh each with the department whose clearance is also required to host the India-South Africa Test match at Feroz Shah Kotla stadium from December 3 to December 7. The first installment is to be paid within two weeks from Thursday and the remaining in two weeks thereafter, the bench said.
“No coercive steps will be taken till further orders,” it said and listed the matter for further hearing on November 27.